![]() Therefore, the product margin for Product W1 under activity-based costing is $7,984. Using the given data, we can calculate the following: Next, we need to assign the Machining and Order Filling costs to the products using the given activity data. Total overhead cost allocated to Order Filling = $18,400 + $800 = $19,200 ![]() Data to performįirst, we need to allocate the overhead costs to the activity cost pools based on resource consumption. Supervisory expense-to three activity cost pools-Machining, Orderįilling, and Other-based on resource consumption. What is the product margin for Product W1 under activity-basedĭoede Corporation uses activity-based costing to compute productĪllocates two overhead accounts-equipment depreciation and The costs in the OtherĪctivity cost pool are not assigned to products.įinally, sales and direct cost data are combined with MachiningĪnd Order Filling costs to determine product margins. Using machine-hours (MHs) and Order Filling costs are assigned to In the second stage, Machining costs are assigned to products Data to performĭistribution of Resource Consumption Across Activity Cost Supervisory expense–to three activity cost pools–Machining, Orderįilling, and Other–based on resource consumption. In the first stage, the activity-based costing systemĪllocates two overhead accounts–equipment depreciation and ![]() The costs in the Other activity cost pool are not assigned to products.įinally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.SOLVED: Doede Corporation uses activity-based costing to compute product In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. Data to perform these allocations appear below:ĭistribution of Resource Consumption Across Activity Cost Pools: In the first stage, the activity-based costing system allocates two overhead accounts-equipment depreciation and supervisory expense-to three activity cost pools-Machining, Order Filling, and Other-based on resource consumption. Doede Corporation uses activity-based costing to compute product margins.
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